Which of the following describes a contract of adhesion?

A contract of adhesion is characterized by being prepared by one party, typically the stronger party, and then accepted or rejected by the other party, who may have little to no ability to negotiate the terms. This type of contract often arises in situations where there is a significant imbalance of power, such as in insurance agreements.

The essence of a contract of adhesion is that the accepting party must either accept the terms as they are presented or forgo the contract altogether. This reflects a "take it or leave it" situation where the terms are non-negotiable, highlighting the lack of bargaining power the accepting party has.

The other options describe differing contractual scenarios. For instance, one option suggests that the contract is negotiated equally, which is contrary to the nature of adhesion contracts. Others imply mutual agreement on every term or involve court oversight, neither of which accurately captures the essence of a contract of adhesion.